Any business owner planning to sell their business within the next eight years should consider selling now while the market is hot and interest rates are low, say industry experts.
OTTAWA, May 6, 2014 /CNW/ - The recent recession held back many retirements as business owners in Canada sustained reduced savings and underperforming businesses, producing a lower selling price for their business and insufficient funds for retirement. Business brokers find this scenario rapidly changing with many more businesses now coming on the market.
The forecast: sellers could outnumber buyers
"We are seeing many more successful businesses coming on the market—a trend we expect to continue for some years to come," says Sunbelt Business Brokers Canada president Greg Kells.
Historically, buyers have greatly outnumbered sellers. This will not be the case by 2018. The numbers will be roughly in balance or perhaps tip to slightly more sellers than buyers, a ratio that will stay for a few years then widen as:
- Some 35% of business owners are now 65 years or older.
- The average small business owner retires at 71 years of age.
- Baby boomers are now hitting 65 years of age, and the number of retirements is increasing and will soar for the next 10 years.
"Business sellers will face more competition for the attention and funds of small business buyers who will be more selective given increased choice," says Kells. "Owners will benefit from using an experienced broker to find the right buyer and the right terms for their business transfer."
"Business owners who meet with one of our brokers also receive a free copy of our Insider Tips on Selling a Business in Canada, winner of a 2013 Small Business Book Award," adds Kells, its author and an industry expert.
With more than 30 offices in Canada and the largest number of certified professional brokers in the country, Sunbelt has more exposure to the market than anyone else. The company has recently added new offices in Saint John, N.B.; St. John's, N.L.; the South Shore of Montreal, Que.; and Sudbury, Ont.; to meet the growing need.
About Sunbelt Business Brokers Canada:
Sunbelt Business Brokers Canada is the place to go to buy or sell a business. The Canadian offices benefit from access to an international network of more than 250 licensed offices and 1,400 brokers that coordinate the sale of some 3,000 small- and mid-sized businesses annually.
Image with caption: "Business owners who wait to sell their business will face increased competition for buyers' funds (CNW Group/Sunbelt Canada)". Image available at: http://photos.newswire.ca/images/download/20140506_C6778_PHOTO_EN_40017.jpg
SOURCE: Sunbelt Canada
For further information: